The road to a lucrative investment property is paved with good tenants. Spend your time, energy and money on details that help your property stand out from the competition. Check out these tips from Dream Builderz to help your rental make a splash.

Be Prepared Before Buying

Real estate serves as a steady source of passive income. If you’re looking to invest in a rental property, do your legwork beforehand to understand the responsibilities, risks and rewards that come with being a landlord. Evaluate your financial profile to calculate whether you can reasonably afford all property-related expenses, from the down payment to unexpected repairs. Your projected costs will help you determine how much to charge for rent.

Choose a Management Solution That Makes Sense

Rental owners have two options for managing property: self-management or professional property management. Your choice will depend largely on your skill set and available time. Managing a property is stressful and time-consuming. If you truly wish for a passive source of income, outsourcing to a property management company may be worth the added expense.

Cover Legal Bases

Landlords have specific legal responsibilities, including:

• Adhering to safety codes
• Maintaining insurance
• Conducting preventative maintenance
• Keeping up with repairs

Establishing a limited liability corporation for your rental property is advisable to protect you from litigation. With an LLC, you can keep your rental property and personal assets separate. Hire a lawyer to set up an LLC or save money by using a formation service. You can learn more about how to form an LLC in Massachusetts here.

Apply a Location, Location, Location Approach to Marketing

Just like where you buy matters, so does where you advertise. Facebook advertisements are an effective way to make your property visible to a large audience. Even if you don’t live in the same area where your rental property is located, you should still connect with the community. Becoming involved establishes you as a credible and caring investor whom locals will eagerly recommend to interested renters.

Go all in on your investment without going all out on expenses. Make modification, business management and marketing decisions that will have the greatest impact on your ability to attract good tenants and offer you the best return on investment. Prioritize amenities that are most desirable to your target renter base, and take steps to protect your finances. Soon enough, your property will be one of the most sought-after spots on the rental market.